Dutch bedroom specialist Beter Bed has reported a growth in first quarter sales with bedding textiles delivering significant success.
According to its latest trading update for Q1 2023, total sales rose 5.1% to €63.5m, with a strong performance in Benelux where sales rose 5.9% to €59.7m.
Like-for-Like order intake Q1 increased by 9.5%, resulting in a stable order book of €19.5m, while online sales led to an online channel share of 17%, with underlying high double-digit order intake growth for Benelux.
“Performance is well above pre-COVID levels with Compound Annual Growth Rate (CAGR) over FY2019 to FY2022 of +8.7% in sales and +6.7% in order intake,” Beter Bed said, adding: “Due to weaker performance of national and international independent retailers, and two product launches delayed, New Business sales were down -6.7% to €3.8m.
“Sales of bedding textiles significantly increased due to our in-house design and development of a unique assortment of bedding textiles. Online showed a high double-digit order intake increase in Q1 2023, compared with same period last year, excluding the first two corona weeks of mandatory store closure.
“The Beter Slapen ID rollout to stores has been accelerated, with over 75% of the Beter Bed store network equipped with the system by the end of Q1. The solution measures the personal needs of the customer and offers independent mattress recommendations, resulting in increased customer satisfaction scores and higher average ticket size. The full rollout is scheduled to be completed by the end of Q2 2023.”
As noted above, Beter Bed’s New Business division experienced a weaker performance, although it has been making significant progress in expanding its product lines and increasing its market reach, with the introduction of a business collection for hotels, the introduction of M line Green motion, and expanding its B2B sales team in the German-speaking region.
Two product launches were delayed, but are now ready to be introduced in the second quarter. This includes a new M line product introduction, as well as the full introduction of the Simmons brand. To further accelerate the launch of the Simmons brand, DBC has intensified its marketing efforts and extended distribution for the brand across the Benelux region.
John Kruijssen, CEO, comments: “Our first quarter performance in 2023 underlines the success of our positioning as a sleep specialist, whilst the growth in bedding textile sales has also contributed to this success. The week-long campaign we launched to promote the Day of Sleep helped to increase awareness of the importance of quality sleep.
“The rollout of our Beter Slapen ID system to Beter Bed stores is on track with now three-quarters of the Beter Bed store network connected, and our team has once again been honored with multiple marketing nominations and awards. We are committed to sustainability, and I am pleased with our progress in transitioning to electric vehicles, and the comprehensive risk assessment of our suppliers, which will support the further advancement in sustainability. To become an employer of choice, we place strong emphasis on continuous learning and development for our employees, with a number of initiatives launched to retain and grow in-house talent.
“Overall, I am confident that our focus on strategic priorities and our ongoing efforts to refine and reinforce our business model will continue to drive revenue growth this year. With our strong Q1 2023 performance and commitment to sustainability, I have faith that BBH will be able to further expand its market leadership.”
